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EXHIBIT 99.1
FOR IMMEDIATE RELEASE MARCH 5, 2001
Contacts: Investor Relations Media Relations
Diana Matley Kevin Brett
408-433-4365 408-433-7150
diana@lsil.com kbrett@lsil.com
CC01-14
LSI LOGIC UPDATES FIRST QUARTER OUTLOOK
MILPITAS, CA - LSI Logic Corporation (NYSE: LSI) today reduced its first quarter
guidance due to the adverse economic climate and a widespread inventory
correction in the communications and storage markets.
"The sharp decline in U.S. customer end-demand coupled with a widespread
inventory correction in the supply chain has prompted us to lower our guidance
for the first quarter," said Wilfred J. Corrigan, LSI Logic chairman and chief
executive officer. "We are confident that revenue growth will resume when the
overall economic outlook improves. We do not have sufficient visibility at this
time to accurately predict the timing for the resumption of growth. However, we
believe that communications and storage will be the growth drivers when the
industry rebounds from this period of economic decline."
LSI Logic now expects that first quarter 2001 revenue will decline approximately
30 percent sequentially from the $751 million reported in the fourth quarter of
2000. Prior guidance called for a 12 percent reduction in revenues.
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The company also anticipates that first quarter earnings* will be three cents a
diluted share, down from the 21 cents the company earlier projected.
Year-earlier first quarter earnings* were 26 cents a diluted share. Gross margin
will be approximately 40 percent.
LSI Logic has embarked on a series of cost-reduction measures to align operating
expenses with current revenue projections. The company's goals for these actions
are to improve profitability without impairing the competitive position of LSI
Logic in its targeted markets.
Notwithstanding this news release, it continues to be the company's policy not
to comment on financial analyst estimates or to provide periodic financial
guidance updates.
* Earnings before goodwill amortization and special items.
SAFE HARBOR FOR FORWARD LOOKING STATEMENTS:
The statements by LSI Logic management and the above statements regarding future
revenues, earnings, gross margins, gains from investment income, tax rates,
inventory buildup, acceleration or deceleration and future depreciation,
estimates made in this news release include forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities and Exchange Act of 1934, as amended. The forward looking
statements included in this news release are made only as of the date of this
release and the company undertakes no obligation to update the forward looking
statements to reflect subsequent events or circumstances. The company's actual
results in future periods may be materially different from any performance
suggested in this news release. The company urges the reader to consider the
risks and uncertainties to which the company is subject and which may cause the
actual results to differ materially from the expectations of the company or its
management. Such risks and uncertainties may include, but may not necessarily be
limited to fluctuations in the timing and volumes of customer demand, the rate
of depletion of customer inventory buildup, the company's ability to obtain
needed licenses from third parties and the company's achievement of revenue
objectives and other financial targets. Other risks and uncertainties include,
but are not necessarily limited to the timing and success of new product
introductions, the continued availability of appropriate levels of manufacturing
capacity and the realization of benefits from the company's strategic
relationships and investments. The extent to which the company's plans for
future cost reductions are realized may also impact its future performance. The
company
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operates in an industry sector where securities' values are highly volatile and
may be influenced by economic and other factors beyond the company's control. In
the context of forward-looking information provided in this news release,
reference is made to the discussion of risk factors detailed in the company's
filings from time to time with the Securities and Exchange Commission, including
but not limited to filings made during the past 12 months.
ABOUT LSI LOGIC
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of
communications and storage semiconductors for applications that access,
interconnect and store data, voice and video. In addition, the company supplies
storage network solutions for the enterprise. LSI Logic is headquartered at 1551
McCarthy Boulevard, Milpitas, CA 95035, 408-433-8000, www. lsilogic.com.
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